CME's Live Cattle Futures Set Open Interest Record

For three consecutive sessions beginning on September 8, open interest in futures on live cattle has set new records on the Chicago Mercantile Exchange (CME), culminating with a record of 122,561 open positions on September 10. Each live cattle contract represents 40,000 pounds of 55 percent choice and 45 percent select USDA grade live steers. The record open interest figure indicates 4.9 billion pounds of beef. Open interest is the number of futures and options contracts outstanding at the close of trading each day. Its significance is that it represents the use of the Merc's risk management instruments by institutions and individuals with a long-term stake in the markets. The Chicago Mercantile Exchange offers a variety of futures and options contracts on livestock, dairy and forest products. As part of its agricultural complex, the CME trades contracts on live cattle, feeder cattle, stocker cattle, boneless beef and beef trimmings, lean hogs, pork bellies, pork cut out, BFP milk, butter, Cheddar cheese, nonfat dry milk, dry whey, lumber and oriented strand board.